NZD/USD Price Analysis: Bulls approach 0.5700 hurdle despite mixed China inflation


  • NZD/USD takes the bids to extend the previous day’s rebound from 31-month low.
  • China’s CPI rose to 2.8% YoY but PPI eased to 0.9% during September.
  • Sustained break of 50-SMA, firmer oscillators favor buyers to cross the monthly resistance line.
  • Sellers may not risk entries beyond four-day-old support line.

NZD/USD renews an intraday high around 0.5680 as bulls cheer a jump in China’s Consumer Price Index (CPI) during early Friday. Even so, the 100-SMA challenges the previous day’s recovery from a 2.5-year low.

That said, China’s headline Consumer Price Index (CPI) matched upbeat market forecasts by rising 2.8% in September while the Producer Price Index (PPI) fell short of meeting expectations during the stated month, down to 0.9% versus 1.0% forecasts and 2.3% prior.

It’s worth noting that the Kiwi pair’s successful break of the 50-SMA joins bullish MACD signals and firmer RSI (14), not overbought, to keep buyers hopeful.

However, a clear upside break of the one-month-old descending resistance line, around 0.5690 by the press time, appears necessary for the NZD/USD bull’s conviction. Following that, the monthly high of 0.5815 will be in focus.

Alternatively, pullback moves may initially aim for the 50-SMA support near 0.5645, a break of which could direct the quote toward an upward-sloping support line from Tuesday, close to 0.5610 at the latest.

In a case where the NZD/USD prices break 0.5610 support, the odds of witnessing a slump towards the fresh yearly low, around 0.5510 of late, can’t be ruled out.

NZD/USD: Four-hour chart

Trend: Further upside expected

Additional important levels

Overview
Today last price 0.5669
Today Daily Change 0.0034
Today Daily Change % 0.60%
Today daily open 0.5635
 
Trends
Daily SMA20 0.5726
Daily SMA50 0.6002
Daily SMA100 0.6148
Daily SMA200 0.6421
 
Levels
Previous Daily High 0.5655
Previous Daily Low 0.5512
Previous Weekly High 0.5815
Previous Weekly Low 0.5597
Previous Monthly High 0.6162
Previous Monthly Low 0.5565
Daily Fibonacci 38.2% 0.56
Daily Fibonacci 61.8% 0.5567
Daily Pivot Point S1 0.5546
Daily Pivot Point S2 0.5457
Daily Pivot Point S3 0.5403
Daily Pivot Point R1 0.5689
Daily Pivot Point R2 0.5744
Daily Pivot Point R3 0.5833

 

 

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